After starting the week above 1.0200 erosion of investor confidence has caused the Australian Dollar to pare gains made last Friday, as markets re-evaluate the outcome of the recent EU summit.
A wild ride for the AUDUSD on Friday night as fresh selling out of Europe seemed to push the AUD through critical support of 1.0070as concerns about the outcome of the European summit emerged.
(From Bell Potter Securities -BELL FX Daily)
The Australian dollar has opened this morning around the 1.0200 level after equity markets reacted positively to the conclusion of the EU summit on the weekend.
Movements in the Australian Dollar continue to be influenced by developments out of Europe.
The Aussie has been sent lower on the overnight bout of risk aversion and is now back at the bottom of the range. Traders will be looking for longs while 1.0150 holds.
Australia's unemployment rate increased for the second month in a row, it was reported yesterday, edging up another 0.1% to 5.3%
Silver is stuck below 33.00 in the near term and the market will be waiting for a break above 33.00 as the major short-term trigger for longs. More aggressive traders could be looking for longs while we remain above 32.30 in expectation of a move to 33.00.
he Australian Dollar climbed another rung on the ladder yesterday, finding support in local growth figures despite a currency market that is on hold ahead of key meetings in Europe today and tomorrow.
The Australian dollar received a boost yesterday, upon the release of a stronger than expected 3rd quarter GDP result.
Bell FX Currency Outlook:
The Australian Dollar has opened fairly unchanged from yesterday to be trading at USD1.0240 as positive moves overnight helped support the local currency.
The Aussie saw a short-term move lower on the back of yesterday’s rate cut but we saw the Aussie well supported on any dip and this causes us to be more bullish. Traders will be looking for an intra-day pullback to 1.0230 or waiting for a break above 1.0335.
Australia’s Central Bank cut the official cash rate yesterday from 4.5 to 4.25 percent for a second straight month. The cut marked the first consecutive drop since February 2009 with rates likely to normalise even further in early 2012.
The Aussie got up towards resistance at 1.0300/50 overnight before being sold lower and we expect the range to hold in the near term.
It was a very quiet Asian session yesterday as investors awaited a beginning of the week catalyst to spur markets in one direction or the other.
The Aussie pushed up to resistance at 1.0335 before reversing swiftly lower on Friday. We’ve seen a pop higher in early Monday trade and this would usually cause us to maintain a bullish bias. However, don’t forget we have the RBA decision tomorrow and this might cause some weakness with most analysts expecting another cut.
Bell FX Currency Outlook:
The Australian Dollar has held its gains from last week, to open up this morning above 1.0200, after the release of US employment data on Friday evening that was close to market expectations.
The Australian Dollar successfully logged its first weekly advance since October after higher yielding assets responded positively to joint efforts by monetary authorities to tackle Europe’s debt crisis.
The Aussie pulled back to 1.0150 before popping higher and this continues our bullish view of the market. A break of 1.0335 now looks like a possibility.
The Australian Dollar started Asian trade notably higher yesterday after a boost in investor sentiment came from some much needed positive news from the Eurozone.
Bell FX Currency Outlook:
The Aussie dollar remained steady overnight holding onto the huge gains it made yesterday; opening around USD1.0230 this morning, up from a low of USD1.0150 during the offshore session.
The flood of money from central banks saw the Aussie surge overnight pushing up to major resistance at 1.0300/50. We’d expect a short term pullback before looking to take new longs.
Bell FX Currency Outlook:
The AUD has had a huge rally overnight following coordinated intervention from the world's major central banks.
In what was a momentum session of movements, the Australian Dollar opens a staggering two and a half cents higher against its US Counterpart this morning at a rate of 1.0256.
Today's coordinated central bank liquidity injections coincide with liquidity concerns (USD LIBOR nearing the highs of June 2010 at 0.53%); policy concerns (EFSF & austerity deadlock), geopolitical concerns (storming of UK Embassy in Tehran) and solvency concerns as signaled by implicit (voluntary) default from Greece.
We haven’t seen a lot of action on silver over the last 24 hours with the pair still trapped between 31.00 and 33.00. The market is likely to play the range in the near term.
The Australian Dollar rose for the second consecutive overnight session last night, trading north through parity on some encouraging news out of Europe and stronger than expected retail sales data in the US.
US consumer confidence jumped from 49.9 to 56.0 in October - marking the highest level since July and underpinning the recent rise in consumer spending.
In what was another bumpy ride for the Australian Dollar yesterday as the Nation’s currency came under some selling pressure early on, with Australia’s Government saying it will reduce spending by A$6.8 Billion, cutting the Surplus forecast for the Fiscal year starting July 1 2012 to A$1.5 billion.
The Aussie was pushed up towards parity on the back of yesterday’s technical reaction higher and the million-dollar question is whether this signals a turn in sentiment for this market. For now, the focus will remain on the downside, with initial targets back to 0.9665.
The Australian Dollar opens noticeably higher this morning against its US Counterpart at a rate of 0.9876 with the local share market snapping six consecutive days of losses.
